Municipal debt, electricity distribution industry reform, wheeling and costing of electricity tariffs at municipalities dominated the opening of the Association of Municipal Electricity Users Convention in Mbombela Municipality today (Monday 21 October). He pointed out that the municipalities under debt relief though seem to be in an even worse position that before. We definitely cannot continue on this trajectoryNersa awaits with keen interest to hear what the requirements will be for municipalities to participate in the electricity market that will be governed by the Market Operator. “The current business model, based on municipalities buying electricity in bulk is unsustainable.”“Other business opportunities for municipalities are needed in order to enhance revenues as well as ensure the sustainability of the municipalities. “When Eskom provides electricity to municipalities it is a sort of debt and then municipalities have to pay back [for the electricity].

Source: The North Africa Journal October 21, 2024 17:11 UTC